TechInAfrica – Zimbabwe through the Central Bank of Zimbabwe will soon introduce new currency notes and coins. The new currency is scheduled to be introduced to the public in the next two weeks. According to John Mangudya, Riverse Bank of Zimbabwe governor, the new currency will consist of $5 notes and $2 coins, interchangeably used at par with bond coins and notes.
Furthermore, Mangudya added that in order to ensure it will not drive inflation, the new currency will be introduced in a phased manner.
“We are going to be releasing the currency, coins, and notes to ensure we don’t starve this market. Within the next two weeks we will have the cash,” said Mangudya
He continued, “The committee felt there was a need to boost the domestic availability of cash in the economy for transactional purposes through a gradual increase in cash supply over the next six months. This additional cash injection will be carried out through the non-inflationary exchange of real-time, gross settlement money for physical cash.”
Mangudya explained that limits will be raised as to the maximum amount in which one is allowed to withdraw. It will be done through a non-inflationary exchange rate of the RTGS money for physical money.
“When you are substituting your cash for plastic money, you don’t increase inflation, but what it does, it will help the population to the extent that people are going to use their money without being charged premiums,” Mangudya explained.
In June, the Zimbabwean government introduced the Zim dollar which causes hyperinflation that increased by 175%. The country is currently experiencing the rising cost of living, lack of foreign currencies to run business, severe fuel shortages, lack of medical supplies, severe power blackouts occur daily, among other serious challenges.
Source: weetracker.com and businesslive.co.za